Interesting article about Oil

wanghong

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' c1 l& P  W6 q. NBelow is an Interesting article I found, which says that.....Do not
' p5 u9 L8 _' s  H! _. vexpect much from Crude Oil producers and future is not with the
4 V9 p. k! ^8 y1 [  k% ]companies producing Jet fuels but Biofuels. Also no wonder if some of
7 Q. F( Y! S# E, L$ z8 rthese oil producer will go bankrupt or out of the business even if
crude prices improves. This implies also to good names such as Shell,
' o7 X0 |* n  B& I1 OEXXON, BG, BP, Cheveron ....xyz.. oils
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! i( D, }1 v8 f) RRecently OPEC reduced crude oil production twice over just a few
2 Z2 k9 Q" U4 Tmonths. There are three wars going on in Gaza, Iraq and Afghandistan.
A year ago these things would have spiked the price of crude oil by at
least $50.00 per barrel. Today, oil price declined by a record amount.


, J: u+ S! B" ZThere are several reasons the price of oil is decreasing in the face
of so much news. These reasons are:

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1. New oil has been found in Canada, Montana, North & South Dakota and
in the ocean near Brazil. Each of these oil fields has more oil than
Arabia.


' [3 \0 ^' t8 w  p9 ^; t" P- k2. New natural gas has been found in Pennsylvania and West Virginia.
* J! {( n; k+ R% o; m# s8 U5 AThis is the largest find in North America.

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' b/ r; D3 ]7 L3. New methods of injecting CO2 and surfactants into oil wells is
being used to double their output.
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3 O8 ^0 I& Z( _& a% B4. Production of bio-fuels is beginning to reach critical mass. Bio
# o; D3 o: W* M3 F, f$ @8 Rfuel is being produced from many plants and algae. The production
potential per acre in some cases is astounding. Many countries are
  F' z: K6 H6 t$ Lracing to produce bio fuels.
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5. Virtually every restaurant in the US and all food processing plants
! }: G/ a# G& r. F; Xare now selling their used oil to bio-diesel producers. Every pork,
1 E- C: R" \# {6 d8 _- Gcattle, turkey and chicken processing plant will soon sell their fat
' K: Q$ |3 W2 x! ~3 pto bio-diesel producers. One pork processing plant in Oklahoma is
producing 30,000 gallons of bio-diesel per day from pork fat.

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6. There are 99 nuclear reactors in various stages of planning and
2 M6 A, ^0 R# X! {3 Oconstruction around the world at this time. Several hundred more are
, ^3 D0 a4 p* d5 uexpected to be built in the future. Much of the energy they produce
will replace oil.
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7. Every company in any form of transportaion business is replacing
older equipment such as trucks, airplanes, train engines, ships, etc.
with new more fuel efficient equipment. Airlines and railway companies
' e0 f# c( b2 a! ^4 e8 j1 V4 hare experiencing 20% to 25% better fuel econony with the new
  e9 Z# f  q7 v% q" d9 ~& Eequipment.

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- u: O+ D+ d* B$ z0 m, T! uAirlines are flying airplanes with bio-fuel. They are finding the bio-
7 X0 m. q4 U  S* J* vfuel is cleaner and performs better than jet fuel.


  A4 Y  t" {% j0 |. p3 f# B* S) S* c4 ^8. Cities and counties throughout the US are selling the rights to
capture methane gas from landfills. This is a huge source of gas
3 i. [3 j0 {8 d0 n8 ?4 I- u" oavailable at very little cost or risk. The gas is displacing crude
3 p: t0 D! W. E# x1 {oil.


& ~% m( Z) P7 q2 Z8 O& G9. Coal is being transformed into a clean burning liquid fuel. The CO2
& Q* |" A  u( X2 Y- u8 y+ nproduced as a byproduct is sold to oil companies for injection into
oil wells.
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/ Y% D7 {$ Q6 N! R+ M) V/ e" M+ v10. Solar, wind and ocean energy is displacing oil as an energy
source. Three new wind turbines are being erected every day in the US.
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Each of the above by itself will not make a large difference in the
price of crude oil but the sum of all of them together is world
changing. The important thing is that OPEC no longer has the ability
# U3 _" h4 ?' N) \$ Fto control oil prices.


3 r7 y: I( |4 |$ {- K& U* y% LWith the above scenario, I still believe that there are under
5 Z1 J# |1 z- [+ E8 B9 r1 t9 jperformed OIL companies and probably they are yet to get the justified
value .....
% d$ N+ t! ?! _IAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...

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The above articles are from WSJ .............PUBLISHED ON 9TH JAN
+ l% @( F2 F, `2009 ... FYI-Only